PRINCIPAL COMMISSIONER vs. M/S TARAPORE AND CO,

T.C.A.No.538 of 2017 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 25.07.2022 CORAM : THE HONOURABLE MR. JUSTICE R. MAHADEVAN AND THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ T.C.A.No.538 of 2017 Principal Commissioner of Income Tax-VII No.121, Mahatma Gandhi Road, Chennai 600 034. ... Appellant

Versus M/s. Tarapore & Co., 827, Dhun Building, Anna Salai, Chennai - 600 002, PAN : AAA FT 3579 P

... Respondent

Appeal preferred under Section 260A of the Income Tax Act, 1961, against the order dated 25.11.2016 passed by the Income Tax Appellate Tribunal, “C” Bench, Chennai, in I.T.A.No.912/Mds/2016. For Appellant : Mr.Karthik Ranganathan Standing Counsel For Respondent : A.S.Sriraman Page 1/4 https://www.mhc.tn.gov.in/judis T.C.A.No.538 of 2017 JUDGMENT (Judgment of the Court was delivered by R.MAHADEVAN, J.) This tax case appeal has been filed by the appellant / Revenue, challenging the order dated 25.11.2016 passed by the Income Tax Appellate Tribunal, “C” Bench, Chennai, in I.T.A.No.912/Mds/2016, relating to the assessment year 2001-2002. 2.By order dated 31.10.2017, this court admitted the aforesaid tax case appeal on the following substantial question of law: “Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in canceling the penalty levied under section 271(1)(c) when the assessee made patently inadmissible claim of deduction towards cost of construction of the building and regularization fee paid to CMDA as revenue expenditure?" 3.When the matter was taken up for consideration, the learned counsel for the appellant / Revenue brought to the notice of this court the Circular No.17/2019 dated 08.08.2019 issued by the Central Board Direct Taxes, Page 2/4 https://www.mhc.tn.gov.in/judis T.C.A.No.538 of 2017 wherein, it is stipulated that appeal shall not be filed/pursued by the Department before the High Court in cases where the tax effect does not exceed Rs.1,00,00,000/- (Rupees One Crore). It is also submitted that the tax effect in this appeal is less than the threshold limit. 4.In the light of the aforesaid submissions made by the learned counsel for the appellant / Revenue, the present appeal, wherein, the tax effect is said to be less than the monetary limit imposed, is dismissed as withdrawn, keeping open the substantial questions of law for determination in an appropriate case. No costs. (R.M.D., J.) (M.S.Q., J.) 25.07.2022

Internet : Yes

Index : Yes / No av To 1. The Income Tax Appellate Tribunal, “C” Bench, Chennai. Page 3/4 https://www.mhc.tn.gov.in/judis T.C.A.No.538 of 2017 R. MAHADEVAN, J. and MOHAMMED SHAFFIQ, J. av 2. Principal Commissioner of Income Tax-VII No.121, Mahatma Gandhi Road, Chennai 600 034.